KKR launches Special Situations Fund II

Global investment firm KKR has launched a second special situations fund, as detailed in several US Securities and Exchange filings.

KKR Special Situations Fund II, with undisclosed target, follows the firm’s debut global special situations fund, which held a final close on $2 billion in January 2014. The strategy focuses primarily on distressed and event-driven investments.

Documents dated 16 December 2014 show that Nat Zilkha (pictured), co-head of KKR credit investment strategies and special situations strategy, is an executive officer on the new fund.

The board of trustees at Maine Public Employees Retirement System (MainPERS) approved a motion to commit up to $60 million to KKR Special Situations (Domestic) Fund II at its December board meeting, subject to final due diligence, a spokesperson for the retirement fund said in a statement.

KKR declined to comment.

The MainePERS fund, which committed capital to KKR’s first special situations fund, had a preliminary total market value of $12.649 billion as of 30 November. The $132 billion Teacher Retirement System of Texas also invested in KKR’s first fund, according to PDI research and analytics data.

KKR stated at the time of closing the first fund that it began soliciting third party capital in 2012 and reached two times its original target of $1 billion. The global special situations strategy is managed by co-heads Nat Zilkha, based in London, and Jamie Weinstein who is based in San Francisco. The team includes professionals in London, New York, San Francisco and Sydney.

In an earnings call in July last year, Scott Nuttall, head of KKR’s global capital and asset management, said the firm was preparing follow-ups for eight strategies and that most of the new offerings, including a slew of Fund IIs, would likely exceed their predecessors in size.